Elon Fights for His Pay Package… and With Altman... and Cook
Jun 11, 2024
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Reporter Esha Day joins the podcast to discuss Tesla's share price and Elon Musk's pay package vote. The episode covers Musk's feud with Apple over AI, potential consequences of the pay package vote, and Musk's threat to ban iPhones at Tesla. Stay tuned for the drama!
In 2018, shareholders approved a staggering pay package for Elon Musk to motivate his focus on Tesla. Delaware court voided the deal due to conflicts of interest. Tesla is attempting a revote on the package to address the court's concerns.
Unusual Billion-Dollar Compensation
The $56 billion stock option package for Musk was highly unusual for a company of Tesla's size. Musk's desire to run Tesla like a private firm creates unique challenges. The current shareholder vote on Musk's pay package raises questions about how he perceives his role within the company.
Diverse Opinions on Musk's Compensation
Shareholders are divided on whether to ratify Musk's pay package. Proponents argue it incentivizes innovation and wealth creation. Opponents criticize governance issues and potential dilution. Retail investors like Earl Frunkpuppi are vocal in opposing the compensation plan.
Implications of Shareholder Votes for Tesla
The shareholder vote on Musk's pay package represents a critical event for Tesla. The outcome may shape future legal strategies. Potential rejection of the package could lead to renegotiated pay terms and impact Tesla's stability. Musk's significance to Tesla's brand and leadership is a prominent concern.
Tranquil Period for Tesla Stock
Tesla's stock has exhibited unusual stability amid anticipation of forthcoming milestone events. Historical volatility measures suggest an anticipation of significant market impact. Uncertainty extends beyond Musk's compensation to include Tesla's strategic shifts towards AI and potential market challenges.
Elon Musk's Feuds with Tim Cook and Sam Altman
Elon Musk's public feud with Tim Cook and Sam Altman over AI integration highlights concerns about privacy and commercial partnerships. Musk's criticism of Apple's AI collaboration reflects broader hesitance towards tech behemoths. Musk's potential foray into phone manufacturing adds complexity to Tesla's future trajectory.
On Thursday, Tesla—and Elon Musk—will face a vote of great emotional (if not legal) import: will shareholders approve, among other things, a measure to restore his $56 billion pay package? The one a Delaware judge threw out earlier this year? To get into what the vote means, we have Dana, Max and reporter Esha Day, who stuck around to tell us what’s happening with Tesla’s share price. It had flatlined earlier this year—but now it’s a bit more “boring.”
Plus, a multifaceted feud watch! After Apple unveiled artificial intelligence integrations Monday, Musk took to X to rip the announcement, saying that if OpenAI were to go into Apple’s operating system, he would not let his employees bring iPhones to work. We shall see if he makes good on this!
